THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.2 - SECURITIES EXCHANGES AND STOCK MARKETS

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SECTION 775   POWER OF COMMISSION TO PROHIBIT TRADING IN PARTICULAR SECURITIES  

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775(1A)  [Trading out of jurisdiction]  

A reference in this section to trading in securities on a stock market is a reference to trading in securities on a stock market, whether in this jurisdiction or elsewhere.

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775(1)  [Commission may notify need to prohibit trading]  

Where the Commission forms the opinion that it is necessary to prohibit trading in particular securities of a body corporate on a stock market of a securities exchange in order to protect persons buying or selling the securities or in the interests of the public, the Commission may give written notice to the securities exchange stating that it has formed that opinion and setting out the reasons for that opinion.

775(2)  [Commission may give notice to prohibit]  

If, after receiving the notice, the securities exchange does not take action to prevent trading in the securities on a stock market of the securities exchange and the Commission is still of the opinion that it is necessary to prohibit trading in the securities on such a stock market, the Commission may, by written notice to the securities exchange, prohibit trading in the securities on such a stock market during a period of not more than 21 days.

775(3)  [Copy of notice to corporation, report to Minister]  

Where the Commission gives a notice to a securities exchange under subsection (2), the Commission shall:

(a)  at the same time send a copy of the notice to the body corporate together with a statement setting out the reasons for the giving of the notice; and

(b)  as soon as practicable give to the Minister a written report setting out the reasons for the giving of the notice and send a copy of the report to the securities exchange.

775(4)  [Body corporate may request referral to Minister]  

The body corporate may request the Commission in writing to refer the matter to the Minister.

775(5)  [Minister may act]  

Where a request is made under subsection (4), the Commission shall immediately refer the matter to the Minister, who may, if he or she thinks fit, direct the Commission to revoke the notice and, if such a direction is given, the Commission shall immediately revoke the notice.

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775(6)  [Securities exchange to prohibit trading]  

A securities exchange shall not permit trading in securities on a stock market of the securities exchange in contravention of a notice under subsection (2).

775(7)  [Notice given by NCSC]  

Where a notice duly given to a securities exchange by the NCSC under a previous law corresponding to subsection (2) was in force immediately before the commencement of this Part and the period for which trading in the securities to which the notice relates on the stock market specified in the notice was prohibited by the notice had not ended before that commencement:

(a)  the notice shall be deemed to be a notice duly given to that securities exchange on that commencement by the Commission under that subsection and prohibiting trading in those securities on that stock market for the unexpired portion of that period;

(b)  a copy of the notice and a statement sent to the corporation before that commencement under a previous law corresponding to paragraph (3)(a) shall be deemed to have been duly sent by the Commission under that paragraph;

(c)  a written report given to the Ministerial Council before that commencement under a previous law corresponding to paragraph (3)(b) shall be deemed to have been duly given by the Commission under that paragraph to the Minister and a copy of that report sent to the securities exchange under that corresponding previous law shall be deemed to have been sent by the Commission under that paragraph;

(d)  any request made by the corporation before that commencement under a previous law corresponding to subsection (4) to refer the matter to the Ministerial Council shall be deemed to have been a request duly made under that subsection to refer the matter to the Minister; and

(e)  if the matter had been referred by the NCSC to the Ministerial Council before that commencement under a previous law corresponding to subsection (5) the matter shall be deemed to have been referred by the Commission to the Minister under that subsection.

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